Net Worth Update - January 2013

I expected a good month in January because my income was going to higher than normal, but with the markets going on a tear to start off 2013 I hit a pretty crazy number for a one month net worth increase. Especially since my net worth isn't some crazy high number, this was a very meaningful change. I had around $1,400 in combined 401k contributions and another $1,000 in ESPP withholding. The 2 heavy lifters though in January were over $8,100 in savings from my net pay and the markets. My latest round of ESPP shares were purchased adding to that position. With the markets going almost straight up and lifting my employer's stock as well that added to the big gain for the month.

When it was all said and done my net worth increased a ridiculous $22,715 in one month. Considering that's starting with a $155k base and not some multi-million that's pretty impressive to me. This ended up being a 14.57% increase from the end of December and a great start towards hitting my goal of a $100k increase for the year.

My after-tax savings rate for January ended up at 85.35%. I'm getting a great start on averaging an 80% savings rate for 2013 as well. The emergency fund crept back up after being used in December and now covers 5.94 months of my average minimum expenses.

It was an incredible first month and a great way to kick off a new year of saving and investing. While it's nice to see the markets go up, inflating the portfolio values in the process, I'd still rather be able to purchase shares outright because of a depressed market. Who knows when that will come but at some point it will. In the meantime I'll just look to sell some puts to at least get some kind of return and build some cash for the inevitable pullback. Hope you were able to kill it to start off 2013!

I'm going to start adding a chart for those that are visual learners. If anything the chart speaks to the power of being disciplined and consistent.

I really hope I can average at least 80% for the year. January was a great start and I should hit 80%+ in February with a higher than normal income and shorter month. I am blessed to have a high paying job and I live in a low cost of living area so that helps out a bunch. I don't know what I'd even spend the difference on if I was like the average American with a 1-6% savings rate.

You'll get there! And it looks like your blog is taking off so that side income will just add to your savings.

Congratulations! I'd love it if every month this year could be another January. Unfortunately, it's probably not going to pan out that way. You goal of 80% saving is very impressive. We probably average 50% although we were higher before having kids. I've given up trying to get back to those levels of savings :)

Thanks! While I like to see the big increase thanks to the markets having an almost non-stop ride up, since I'm in the accumulation phase I wouldn't mind another bear market, or at least flat, to let me get in before the yields start coming down.

Kids have a way of doing that, although I'd be pretty happy with a 50% savings rate with kids in the picture. That's why I'm saving as much as I can right now because I know it will change in the future.

I do have a high paying job and cheap cost of living. If I wasn't married, which I wouldn't trade for anything, I could probably push it closer to 90% on a regular basis. Since I work out of town and have a trailer provided for living quarters, my housing is pretty much taken care of, save the few times that I'm actually home. That would get rid of all my utilities and rent expenses which is about 1/2 of my expenses as it is.

50% is still well above average, so I wouldn't be ashamed of that at all.

That savings rate is simply off the chains. I've hit high 70% a number of times, but big expenses always come in here and there to lower my overall yearly savings rate down to the high 50% level. Great job with that!

You're killing it in the net worth department. That increase was awesome. Imagine if you can do that every month! Keep it up.

I keep going back and forth on whether I should change my savings rate calculation since there's some items like gifts and travel that I plan to spend in the future, but it's going straight to savings now. Although, my true net savings needs to include my 8% ESPP withholding since that comes out of post-tax pay, but I only account for what actually hits my checking account.

It sure would be nice to grow it $20k per month, however I don't think that's going to happen. If the markets have another good month in February then I might be close again because I'll have the profit sharing that goes to my 401k hit sometime this month.

PIP, how are you doing it? 85% savings? You either have a huge salary or side income, or I can't imagine living and supporting my family off of 15% of my income. Impossible and impressive at the same time!

This is just off my income, but my wife teaches so she has her own as well. Since I'm gone from home it's easiest to keep the finances separate and then I just transfer money to her for rent/utilities/groceries. I grossed about $125k last year and then I also get tax free expense check since I work out of town. Those add up to about $1k/mo tax free, that helps a lot.

PIP, thanks for the reply, although it was a rhetoric question and I didn't expect response to it. But since you started, what is your job? (I didn't see you saying it). Of course, you do not have to respond if you do not feel comfortable.

Nevertheless 125k is great salary. Is your company hiring (depends what it is)?

I work in the oil field as a MWD hand. I wish the $125k was salary but salary is around $25k and the rest is made through my day rate. I get paid every day that I'm on a rig doing work. We're essentially paid so well because we're gone from home so much. The work is pretty easy as long as everything is going right, but sometimes it's a huge pain. There's talk of our district needing to hire more people because drilling is supposed to be picking back up, as far as nationwide though I have no idea.

Ooops, I didn't really explain it. I run tools that that put downhole while they're drilling that tells the the direction and formation that they're drilling through. As I said earlier, when everything is going smoothly it's easy work, I pretty much browse the internet, work on the blog and watch tv/movies during my shift. Not bad at all.

Wow! A $100k increase in net worth is admirable! I wish you the best of luck on achieving that goal.

And maybe you've addressed this in the past, but do you get any discount for your ESPP? Or do you really like your employers stock? My employer has an ESPP, but no discount and it's not exactly a stellar stock.

January was a great start towards the $100k goal. So I think I have a pretty good shot to hit it. Getting 20% of the way there in one month was not what I was expecting.

I get a 15% discount on the shares so it's a pretty significant amount. I'm having them withhold 8% of my after-tax salary for that right now. I'll be looking to sell some off every 6 months from here on out.

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